What is the Connecticut PTET rate?

Connecticut's PTET rate is 6.99% flat. [PLACEHOLDER: state DOR cite] — 6.99% top CT individual rate historically used; confirm precise 2026 CT-PET rate/structure from portal.ct.gov/drs.

Is the Connecticut owner credit refundable?

Connecticut's PTET owner credit is non-refundable. [PLACEHOLDER: state DOR cite] — Connecticut owner credit historically 87.5% of distributive share, but verify current % from CT-PET instructions.

Does Connecticut PTET affect composite-return filing?

Stacks. See the composite-vs-PTET page for the full matrix.

Connecticut · CT

Connecticut Pass-Through Entity Tax (PTET)

Connecticut's PTET regime is one of the 37+ state workarounds to the federal SALT cap (IRC §164(b)(6)). The election is annual, statute-pinned below, and interacts with composite filing and §199A QBI in state-specific ways.

Statute: Conn. Gen. Stat. § 12-699 (Pass-Through Entity Tax)
State DOR portal: https://portal.ct.gov/drs/taxes/pass-through-entity/tax-information
Election deadline: For tax years beginning on or after January 1, 2024, the PTE tax is OPTIONAL (it was mandatory 2018–2023). Election made by written notice to the Commissioner no later than the due date (or extended due date) of the return; checking the box on a timely-filed Form CT-PET constitutes notice.
Election form: Form CT-PET (Connecticut Pass-Through Entity Tax Return) — replaced Form CT-1065/CT-1120SI for PTET-electing entities
Entity-level rate: 6.99% — [PLACEHOLDER: state DOR cite] — 6.99% top CT individual rate historically used; confirm precise 2026 CT-PET rate/structure from portal.ct.gov/drs.
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: non-refundable — [PLACEHOLDER: state DOR cite] — Connecticut owner credit historically 87.5% of distributive share, but verify current % from CT-PET instructions.
Composite interaction: stacks
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-11

CT was the FIRST state to enact a PTET (2018) — historically mandatory. PA 23-204 (2023) made it elective starting tax years on/after 2024-01-01. Source: portal.ct.gov/drs/taxes/pass-through-entity/tax-information.

IRC §164(b)(6)Notice 2020-75 IRC §199A

Reference computation

For a Connecticut pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Connecticut — reference example

QBI allocation·CT rate= Entity-level tax

$500,000×7%=$34,950

Conn. Gen. Stat. § 12-699 (Pass-Through Entity Tax)

Entity tax·Federal bracket= Federal deduction (gross)

$34,950×37%=$12,932

At a 37% federal bracket, the entity-level deduction saves $12,932 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,586), aggregate benefit is approximately $10,345.

IRS Notice 2020-75

Run the picker pre-filled for Connecticut

Election walkthrough

Verify eligibility. Connecticut accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
Check the deadline. For tax years beginning on or after January 1, 2024, the PTE tax is OPTIONAL (it was mandatory 2018–2023). Election made by written notice to the Commissioner no later than the due date (or extended due date) of the return; checking the box on a timely-filed Form CT-PET constitutes notice. Election is annual and irrevocable for that year.
Compute the entity-level tax. Apply the 6.99% rate to qualified net income.
Pay and file. Use Form CT-PET (Connecticut Pass-Through Entity Tax Return) — replaced Form CT-1065/CT-1120SI for PTET-electing entities. Quarterly estimates may be required.
Owners claim the state credit. non-refundable credit on the personal state return.
Verify composite interaction. Composite interaction: stacks. See composite vs PTET.
Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Connecticut PTET — common questions

Annual deadline reminder

State PTET law revises annually. Connecticut's data was last verified on 2026-05-11. Re-confirm with the state DOR primary source before electing or filing. Last full-site review: 2026-05-12.

Loading…

Reference computation

For a Connecticut pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Connecticut — reference example

QBI allocation·CT rate= Entity-level tax

$500,000×7%=$34,950

Conn. Gen. Stat. § 12-699 (Pass-Through Entity Tax)

Entity tax·Federal bracket= Federal deduction (gross)

$34,950×37%=$12,932

At a 37% federal bracket, the entity-level deduction saves $12,932 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $2,586), aggregate benefit is approximately $10,345.

IRS Notice 2020-75

Election walkthrough

Verify eligibility. Connecticut accepts: s-corp, partnership, llc-as-s, llc-as-partnership.

Check the deadline. For tax years beginning on or after January 1, 2024, the PTE tax is OPTIONAL (it was mandatory 2018–2023). Election made by written notice to the Commissioner no later than the due date (or extended due date) of the return; checking the box on a timely-filed Form CT-PET constitutes notice. Election is annual and irrevocable for that year.

Compute the entity-level tax. Apply the 6.99% rate to qualified net income.

Pay and file. Use Form CT-PET (Connecticut Pass-Through Entity Tax Return) — replaced Form CT-1065/CT-1120SI for PTET-electing entities. Quarterly estimates may be required.

Owners claim the state credit. non-refundable credit on the personal state return.

Verify composite interaction. Composite interaction: stacks. See composite vs PTET.

Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Connecticut PTET — common questions